8-521
383. Halm Urban Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for August was based on 3,000 meals. The diner’s director has
provided the following cost data to use in the budget: groceries, $3.85 per meal; kitchen
operations, $4,600 per month plus $1.15 per meal; administrative expenses, $3,800 per month
plus $0.85 per meal; and fundraising expenses, $1,600 per month. The director has also provided
the diner’s statement of actual expenses for the month:
Halm Urban Diner
Statement of Expenses
For the Month Ended August 31
Actual meals 2,900
Groceries $10,735
Kitchen operations 8,155
Administrative expenses 6,305
Fundraising expenses 1,620
Total expense $26,815
Required:
Prepare a report showing the revenue and spending variances for each of the expenses and for
total expenses for August. Label each variance as favorable (F) or unfavorable (U).
8-523
384. Camcam Corporation uses customers served as its measure of activity. During July, the
company budgeted for 26,000 customers, but actually served 30,000 customers. The company
uses the following revenue and cost formulas in its budgeting, where q is the number of
customers served:
Revenue: $4.90q
Wages and salaries: $34,400 + $1.60q
Supplies: $1.00q
Insurance: $8,500
Miscellaneous expense: $5,600 + $0.20q
The company reported the following actual results for July:
Revenue $148,800
Wages and salaries $82,000
Supplies $28,600
Insurance $8,100
Miscellaneous expense $10,600
Required:
Prepare a report showing the company’s revenue and spending variances for July. Label each
variance as favorable (F) or unfavorable (U).
8-525
385. Cicchetti Corporation uses customers served as its measure of activity. The following
report compares the planning budget to the actual operating results for the month of December:
Cicchetti Corporation
Comparison of Actual Results to Planning Budget
For the Month Ended December 31
Actual Results Planning Budget
Variances
Customers served 36,000 33,000
Revenue ($4.80q) $173,000 $158,400 $14,600 F
Expenses:
Wages and salaries ($36,900 + $1.60q) 96,900 89,700 7,200 U
Supplies ($0.90q) 31,900 29,700 2,200 U
Insurance ($13,300) 13,500 13,300 200 U
Miscellaneous expense ($6,300 + $0.40q) 22,300 19,500 2,800 U
Total expense 164,600 152,200 12,400 U
Net operating income $8,400 $6,200 $2,200 F
Required:
Prepare a report showing the company’s revenue and spending variances for December. Label
each variance as favorable (F) or unfavorable (U).
8-527
386. Paye Clinic uses patient-visits as its measure of activity. The following report compares
the planning budget to the actual operating results for the month of January:
Paye Clinic
Comparison of Actual Results to Planning Budget
For the Month Ended January 31
Actual
Results Planning
Budget
Variances
Patient-visits 3,600 3,900
Revenue ($33.50q) $120,410 $130,650 $10,240 U
Expenses:
Personnel expenses ($30,800 + $10.60q) 69,990 72,140 2,150 F
Medical supplies ($2,100 + $5.40q) 21,990 23,160 1,170 F
Occupancy expenses ($7,600 + $1.20q) 11,810 12,280 470 F
Administrative expenses ($5,900 + $0.30q) 6,770 7,070 300 F
Total expense 110,560 114,650 4,090 F
Net operating income $9,850 $16,000 $6,150 U
Required:
Prepare a report showing the clinic’s revenue and spending variances for January. Label each
variance as favorable (F) or unfavorable (U).
8-529
387. Payeur Corporation uses customers served as its measure of activity. The company bases
its budgets on the following information: Revenue should be $4.50 per customer served. Wages
and salaries should be $38,300 per month plus $1.40 per customer served. Supplies should be
$0.80 per customer served. Insurance should be $10,100 per month. Miscellaneous expenses
should be $5,400 per month plus $0.40 per customer served.
The company reported the following actual results for December:
Customers served 31,000
Revenue $138,100
Wages and salaries $82,900
Supplies $26,200
Insurance $9,800
Miscellaneous expense $20,400
Required:
Prepare a report showing the company’s revenue and spending variances for December. Label
each variance as favorable (F) or unfavorable (U).
8-531
388. Hartz Urban Diner is a charity supported by donations that provides free meals to the
homeless. The diner’s budget for July was based on 3,100 meals. The diner’s director has
provided the following cost data to use in the budget: groceries, $2.50 per meal; kitchen
operations, $4,700 per month plus $1.75 per meal; administrative expenses, $2,200 per month
plus $0.85 per meal; and fundraising expenses, $1,700 per month. The director has also provided
the diner’s statement of actual expenses for the month:
Hartz Urban Diner
Statement of Expenses
For the Month Ended July 31
Actual meals 2,700
Groceries $6,540
Kitchen operations 9,065
Administrative expenses 4,715
Fundraising expenses 1,620
Total expense $21,940
Required:
Prepare a report showing the diner’s spending variances for each of the expenses and for total
expenses for July. Label each variance as favorable (F) or unfavorable (U).
8-533
389. Toadvine Clinic uses patient-visits as its measure of activity. During April, the clinic
budgeted for 3,800 patient-visits, but its actual level of activity was 3,400 patient-visits. The clinic
uses the following revenue and cost formulas in its budgeting, where q is the number of patient–
visits:
Revenue: $39.70q
Personnel expenses: $38,700 + $11.50q
Medical supplies: $1,000 + $7.30q
Occupancy expenses: $11,700 + $1.30q
Administrative expenses: $6,700 + $0.30q
The clinic reported the following actual results for April:
Revenue $132,280
Personnel expenses $76,500
Medical supplies $26,300
Occupancy expenses $16,210
Administrative expenses $7,620
Required:
Prepare a report showing the clinic’s revenue and spending variances for April. Label each
variance as favorable (F) or unfavorable (U).
8-535
390. Carvana Clinic uses patient-visits as its measure of activity. During December, the clinic
budgeted for 3,400 patient-visits, but its actual level of activity was 3,100 patient-visits. The clinic
has provided the following data concerning the formulas used in its budgeting and its actual
results for December:
Data used in budgeting:
Fixed element per month Variable element per
patient-visit
Revenue – $39.20
Personnel expenses $38,600 $9.90
Medical supplies $1,700 $5.90
Occupancy expenses $8,200 $2.00
Administrative expenses $6,400 $0.40
Actual results for December:
Revenue $118,750
Personnel expenses $72,220
Medical supplies $20,080
Occupancy expenses $13,790
Administrative expenses $7,520
Required:
Prepare a report showing the clinic’s revenue and spending variances for December. Label each
variance as favorable (F) or unfavorable (U).
8-537
391. Vangemert Corporation uses customers served as its measure of activity. During June,
the company budgeted for 22,000 customers, but actually served 25,000 customers. The company
uses the following revenue and cost formulas in its budgeting, where q is the number of
customers served:
Revenue: $5.30q
Wages and salaries: $35,400 + $1.90q
Supplies: $0.70q
Insurance: $9,600
Miscellaneous expense: $5,000 + $0.10q
The company reported the following actual results for June:
Revenue $132,600
Wages and salaries $82,400
Supplies $16,700
Insurance $11,900
Miscellaneous expense $7,100
Required:
Prepare a report showing the company’s revenue and spending variances for June. Label each
variance as favorable (F) or unfavorable (U).
8-539
392. Mulberry Clinic uses patient-visits as its measure of activity. The clinic bases its budgets
on the following information: Revenue should be $48.70 per patient-visit. Personnel expenses
should be $27,600 per month plus $14.70 per patient-visit. Medical supplies should be $1,000 per
month plus $10.10 per patient-visit. Occupancy expenses should be $9,500 per month plus $2.40
per patient-visit. Administrative expenses should be $3,800 per month plus $0.10 per patient-
visit.
The clinic reported the following actual results for August:
Patient-visits 2,000
Revenue $96,630
Personnel expenses $55,310
Medical supplies $21,540
Occupancy expenses $14,470
Administrative expenses $3,960
Required:
Prepare a report showing the clinic’s revenue and spending variances for August. Label each
variance as favorable (F) or unfavorable (U).
